Windows 10 ESU pricing and migration: what Australian SMEs should do in 2026

Windows 10 reached end of support on 14 October 2025 and is now in Year 1 of Microsoft's Extended Security Updates (ESU) program. For Australian SMEs running Windows 10 commercially, ESU costs roughly AU$85 per device in Year 1, AU$170 in Year 2, and AU$340 in Year 3 (ex GST), doubling each year, and Year 2 begins 14 October 2026. ESU is a temporary bridge, not a long-term plan: by October 2028 the program ends regardless of how much you've paid, and most SMEs are better served by Windows 11 migration or hardware refresh rather than three years of escalating ESU fees.

Key facts

• Windows 10 reached end of support on 14 October 2025. Devices without ESU receive no security patches.
• Commercial ESU pricing (per device, ex GST): AU$85 Year 1, AU$170 Year 2, AU$340 Year 3, totalling roughly AU$595 per device over three years.
• Year 2 commences 14 October 2026.
• ESU pricing is cumulative: late enrolment requires paying for all prior years.
• Devices managed by Microsoft Intune or Windows Autopatch get a ~25% discount on ESU.
• ESU is free for Windows 10 endpoints connecting to Windows 365 Cloud PCs or running on Azure VMs.
• Consumer ESU runs for one year only (to 13 October 2026); commercial ESU runs for up to three years (to October 2028).

What is Windows 10 ESU and what does it actually cover?

Windows 10 Extended Security Updates is Microsoft's paid post-end-of-life program providing critical and important security patches for Windows 10 22H2 devices for up to three years after support ended. ESU does not include feature updates, non-security fixes, design changes, or technical support outside of issues with the ESU program itself.

For most SMEs, that means buying time. ESU keeps a fleet of Windows 10 PCs receiving the security patches they'd otherwise miss, but it doesn't extend the operational life of those PCs in any other way. Application compatibility, driver support, and modern security features (Pluton, Smart App Control, virtualisation-based security, Windows Hello with TPM 2.0) are all things ESU does not give back.

The other thing worth being clear about: Microsoft has priced ESU specifically to discourage long-term reliance on Windows 10. Year 2 doubles, Year 3 doubles again, and the program ends after Year 3 regardless. The pricing structure is designed to make migration the rational choice for any organisation that can do it.

How much does Windows 10 ESU cost in Australia?

Windows 10 ESU for commercial customers costs USD$61 per device for Year 1, doubling annually. Converted at current rates and adjusting for Microsoft's Australian list pricing, that's roughly AU$85 in Year 1, AU$170 in Year 2, and AU$340 in Year 3, all per device, ex GST. Total three-year cost: about AU$595 per device.

For a 30-device SME, that's roughly AU$2,550 in Year 1, AU$5,100 in Year 2, and AU$10,200 in Year 3. The pricing is cumulative: if you skip Year 1 and try to enrol in Year 2, you'll pay for both years. There is no retroactive discount.

Two discount paths are worth knowing about. Devices managed via Microsoft Intune or Windows Autopatch attract a roughly 25% cloud management discount. And if your Windows 10 endpoints connect to Windows 365 Cloud PCs (running Windows 11), or run as VMs on Azure, ESU is included at no additional cost. For SMEs already on the Microsoft cloud stack, this can change the maths significantly.

Should you pay for ESU or migrate to Windows 11?

For most SMEs, the answer is migrate. Windows 11 upgrades are free for properly licensed Windows 10 devices that meet the hardware requirements (TPM 2.0, supported CPU, 4GB RAM, UEFI Secure Boot), and the migration cost on compatible devices is essentially the technician time to validate, upgrade, and verify.

The real question is what proportion of your fleet is Windows 11-compatible. In our experience working with Sydney SMEs across 2024 and 2025, fleets purchased in 2019 or later are mostly compatible. Fleets purchased in 2017 or earlier mostly aren't. Fleets in the middle vary, and need a per-device check. Microsoft's PC Health Check tool covers the basics, but RMM-driven hardware audits give a faster fleet view.

The decision tree we use with clients goes roughly: if a device is Windows 11-compatible, upgrade now. If it's not compatible but less than 4 years old, plan a hardware refresh in the next 12-18 months and use ESU only as a bridge. If it's not compatible and more than 4 years old, replace it now rather than paying ESU fees on aging hardware that's likely to fail anyway.

What happens on 14 October 2026?

Year 2 of ESU commences 14 October 2026 at AU$170 per device, double Year 1's price. Organisations enrolled in Year 1 need to renew or migrate before that date. Organisations not yet enrolled and considering it from October 2026 onward will need to pay both Year 1 and Year 2 to get current coverage.

For consumer Windows 10 devices (Home edition, personal use), ESU coverage ends on 13 October 2026 with no Year 2 option. After that date, Windows 10 Home devices receive no security updates regardless of payment. The only paths forward are Windows 11 upgrade (where compatible) or hardware replacement.

The October 2026 deadline is also when the regulatory pressure from APP 11 (technical and organisational measures for personal information security) becomes unambiguous. Running unsupported operating systems on devices that handle customer data is increasingly hard to defend as "reasonable steps" once a free or low-cost migration path exists.

What's the smart strategy for a typical Australian SME fleet?

Three-step approach we recommend to SME clients across our Sydney, Melbourne, and Brisbane base.

1. Audit the fleet now. Every Windows 10 device, by age, by Windows 11 compatibility, by criticality. Group into "upgrade now," "refresh in 6 months," and "ESU bridge only" buckets. This audit is itself a useful exercise even if you've already started migrating.

2. Migrate the easy ones first. Upgrade Windows 11-compatible devices in batches, prioritising user-facing roles where Windows 11's modern security features have the highest payoff. Run upgrades after-hours or use Windows Autopatch to manage the rollout. Most SMEs we see can do this between October 2025 and June 2026 with no major business disruption.

3. Use ESU only where you have to, and budget the exit. For specialist devices (line-of-business apps that haven't been recertified for Windows 11, hardware tied to specific peripherals, devices in tightly-controlled compliance environments), ESU Year 1 is reasonable. ESU Year 2 at AU$170 is a forcing function: by then, plan to either be off Windows 10 or have an explicit reason to keep paying. Don't drift into Year 3 by accident.

Frequently asked questions

How much does Windows 10 ESU cost per device in Australia?

For commercial customers, Windows 10 ESU costs approximately AU$85 per device for Year 1 (October 2025 to October 2026), AU$170 for Year 2 (October 2026 to October 2027), and AU$340 for Year 3 (October 2027 to October 2028), all ex GST. Total three-year cost is about AU$595 per device. Devices managed via Intune or Autopatch attract a roughly 25% discount.

Can I buy Windows 10 ESU Year 2 without buying Year 1?

No. ESU pricing is cumulative. If you enrol in Year 2 having skipped Year 1, you'll pay for both years to get current coverage. There's no retroactive discount or partial coverage option. Microsoft has structured the pricing this way to discourage stalling.

Is Windows 10 ESU available for free anywhere?

Yes, in two cases. Windows 10 endpoints that connect to Windows 365 Cloud PCs running Windows 11 are entitled to ESU at no additional cost, provided the device is Microsoft Entra joined or hybrid joined and the user signs in at least every 22 days. Windows 10 virtual machines hosted on Azure (Azure VMs, Azure Dedicated Host, Azure VMware Solution) also receive ESU free for up to three years.

What happens if I run Windows 10 without ESU after October 2025?

The device continues to function but receives no security patches. New vulnerabilities discovered after October 2025 remain unpatched indefinitely on those devices. From a Privacy Act APP 11 perspective, this is increasingly difficult to defend as "reasonable steps" for protecting personal information once a paid (or free, via cloud) ESU path exists.

Should my SME just upgrade everything to Windows 11 instead?

For most Australian SMEs, yes, where the hardware supports it. Windows 11 upgrades are free for licensed Windows 10 users on compatible hardware. The decision comes down to per-device compatibility and the cost trade-off between three years of ESU fees and selective hardware refresh. For 30+ device fleets with 70%+ Windows 11 compatibility, migration is almost always cheaper than full ESU coverage.

If you'd like a hand auditing your Windows 10 fleet, planning the migration to Windows 11, or running a structured hardware refresh that keeps disruption to a minimum, we can run a Windows 10 EOS readiness review tailored to where your fleet sits today and what you actually need to keep running.